Radio+Television Business Report

With much of the company’s executive leadership team still mourning the January 27 death of legendary radio programming pro Bill Tanner, SummitMedia has entered into a fresh — and bigger — agreement for ratings and audience measurement services from the nation’s dominant provider of consumption data.

The Birmingham, Ala.-based radio broadcasting company led by Carl Parmer has inked a new long-term agreement for Nielsen Audio services across SummitMedia’s nine markets.

The new accord incorporates “an expansion and enhancement” of the service level to include Continuous Diary Measurement (CDM).

As such, SummitMedia now has what Nielsen Audio describes as “full, unqualified subscriber access to the monthly CDM currency ratings, TAPSCAN software and Nielsen Scarborough in all markets where available.”

In addition to its home market of Birmingham, SummitMedia’s stations are located in Greenville-Spartanburg; Honolulu; Knoxville; Louisville; Richmond; Wichita; Omaha; and in Iowa. The company was formed in 2013, when Cox Media Group sold to Parmer 24 stations comprised of the Alabama; South Carolina; Hawaii; Kentucky; and Virginia properties.

“We are looking forward to utilizing Nielsen’s measurement and data analytic capabilities to showcase SummitMedia’s value to the advertiser and agency communities,” said Parmer, who serves as Chairman/CEO of SummitMedia. “Consumers’ media habits are evolving at an incredibly rapid pace and having a faster read on audience trends is imperative. Continuous Diary Measurement will enable our teams to react more strategically and quickly.”

Nielsen Managing Director Brad Kelly added, “SummitMedia has placed their trust in us to deliver an accurate and timely read on radio audiences.  Equipped with CDM, SummitMedia’s talented sales pros will be well positioned to optimize revenue and attract new advertisers by delivering better, faster, keener insights to the local radio ad marketplace.”

— RBR+TVBR West Coast Bureau

EUREKA, CALIF. — In the region of California behind the “Redwood Curtain,” National Football League fans largely support the San Francisco 49ers or the Raiders. Still, when it comes to the Super Bowl, everyone with an interest in the NFL — or the commercials in-between the game action — are of interest to just about anyone.

As such, not getting the game due to a retransmission consent “blackout” is a big frustration — one that fueled the ire of a Member of Congress, in addition to pro-MVPD lobby ATVA.

Lo and behold, just before 11am Eastern on Game Day, AT&T and Cox Media Group scored a touchdown for DirecTV subscribers in markets where CMG owns TV stations.

Among those markets: Humboldt County, Calif.; Dayton, Ohio and Seattle.

There, CMG owns the CBS affiliate, home of Super Bowl LV.

In a joint statement, AT&T confirmed that the DirecTV owner and CMG entered into a new multi-year retransmission consent agreement. As such, the prevention of any DirecTV customer receiving a CMG-owned station was immediately lifted.

Had a deal not been reached, viewers in the Seattle and Dayton DMAs with DirecTV as the television service of choice would have been left scrambling for an alternative to watch the Tampa Bay Buccaneers, led by Tom Brady, smother the Kansas City Chiefs 31-9 in Tampa.

Terms of the agreement were not disclosed.

“The parties appreciate consumers’ patience during this negotiation,” the companies said Sunday.

The stations impacted by the retrans impasse and Sunday signing include not only the legacy Cox Media Group stations but also those acquired by Apollo Global Management from Brian Brady’s Northwest Broadcasting and later merged into a new CMG under Apollo majority control.

The stations now back on DirecTV include:

• WSB-2, the ABC affiliate in Atlanta
• WFXT-25, the FOX affiliate in Boston
• WSOC-9, the ABC affiliate in Charlotte, and independent sibling WAXN-64
• WHIO-7 in Dayton, the market’s dominant station and a CBS affiliate
• WFOX-30 in Jacksonville, the FOX affiliate along Florida’s First Coast, and the MyNetwork TV affiliate using WFOX-30.2
• WHBQ-13, the FOX affiliate in Memphis
• WFTV-9, the ABC affiliate in Orlando, and unaffiliated WRDQ-27
• WPXI-11, the NBC affiliate in Pittsburgh
• KIRO-7, the CBS affiliate in Seattle
• KOKI-23, the FOX affiliate in Tulsa, and MyNetwork TV sibling KMYT-41
• FOX affiliate KAYU-28 in Spokane
• FOX affiliate WICZ-40 in Binghamton, N.Y.
• FOX affiliate WSYT-68 in Syracuse
• FOX affiliate KMVU-26 in Medford-Ashland, Ore.
• KPVI-6 in Idaho Falls, Idaho, a NBC affiliate
• KFFX-11 in Yakima, Wash., the market’s FOX affiliate, and simulcast partner KCYU-LD 41 in Tri-Cities, Wash.
• CBS affiliate KSWT-13; Estrella TV, on KSWT-13.2; and NBC affiliate KYMA-11 in Yuma, Ariz.
• KLAX-31 and KWCE-LP 27 in Alexandria, Va.
• WABG (ABC), WABG-HD2 (FOX), WNBD (NBC), and WXVT (CBS), all stations serving the Greenville-Greenwood, Miss., DMA.

The return of all of these stations to local DirecTV lineups on Sunday morning (2/7), after being yanked Tuesday (2/2), came following an all-out assault on Apollo and CMG by the American Television Alliance (ATVA).

“As a result of Wall Street giant Apollo Global Management’s ongoing and egregious broadcast blackout of its Cox Media Group subsidiary stations, fans in players’ hometowns and college towns won’t be able to watch them suit up with their team for Super Bowl LV this Sunday,” the ATVA stated in a communiqué released late Friday.

It noted how viewers in Seattle with DirecTV were threatened from being able to watch two former University of Washington football players now on the Buccaneers roster.

The ATVA also pointed to Alex Cappa, a Bucs Guard who once played at Humboldt State University in Eureka, Calif.

Chalk that up as another frustration point for locals who had to ensure a “blackout” of CMG-owned CBS affiliate KVIQ-14 and NBC sibling KIEM-3 on Suddenlink systems across much of January. That impasse led some in Humboldt County to drop Suddenlink and shift to DirecTV. Then came the DirecTV/CMG impasse.

Across the impasse with AT&T, CMG stuck to its guns — and even offered a statement that is wholly false.

We cannot force AT&T/DIRECTV to keep retransmitting our stations – we are dark because AT&T/DIRECTV has chosen to remove KIEM and KVIQ from its service. We are hopeful that AT&T/DIRECTV will abandon its blackout of our stations to the detriment of viewers in favor of meaningful negotiations that lead to a mutually beneficial deal for all parties. 

In retransmission consent negotiations, both the MVPD and the TV station owner are responsible for reaching a retransmission fee accord that is both prudent and fair to each party.

As AT&T and CMG fought just days after CMG and Altice USA-owned Suddenlink scuffled over a fresh retransmission consent deal, Rep. Jared Huffman spoke up, noting that he’s moving forward with a bill that would go far to end retrans impasses such as these.

“My constituents are tired of these finger pointing exercises where big media conglomerates blame each other while consumers get screwed by blackouts,” Huffman said. “I’m sure there’s some blame to go around, but CMG is the common denominator in the two recent blackouts. At a minimum, that suggests they’re not working proactively to protect consumers. At worst, it suggests they’re using consumers as hostages by letting blackouts happen to maximize their negotiating leverage.  Either way, it’s unacceptable.”

While viewers in big markets such as Seattle and Dayton were in the crosshairs of the potential Super Bowl “blackout,” it is smaller markets such as Eureka-Arcata, Calif.; Yuma, Ariz.; and Greenwood, Miss.; that have seen repeated squelching of signals presently owned by CMG.

In late January 2020, former Northwest Broadcasting stations under Apollo/CMG control were blocked by Dish Network due to a retrans impasse.

That followed a “blackout” by DirecTV of the Northwest-owned stations in October 2019, a reprise of earlier problems between the DBS provider and Brian Brady-led Northwest. In January 2011, the then-Northwest stations were prevented from reaching DirecTV customers in January 2011 and did not return until four weeks later, just in time for the Super Bowl. Then came a new impasse and “blackout,” in late August 2012.

Reporting by Ethan Hunt in Eureka, Calif. Editing by Adam R Jacobson in Boca Raton, Fla.

MORE FROM THE RBR+TVBR ARCHIVES:

Suddenly, Suddenlink Impasse With Cox Ends RBR-TVBR It was hardly expected, considering all of the back and forth rhetoric and typical “it’s their fault” statements between a TV station owner and an MVPD in the midst of heated negotiations during a retransmission consent accord impasse. But,  Altice USA-owned Suddenlink on Thursday restored each of the Cox Media Group stations that had blocked from viewers. Could Suddenlink/CMG Impasse Lead To Congressional Action? Adam Jacobson CMG stations once owned by Brian Brady’s Northwest Broadcasting have been blocked from Suddenlink customers due to a retransmisson consent fee impasse entering its third week. Now, the Member of Congress serving Northwest California is ready to take action on Capitol Hill that could help thwart such disputes — and the consumer harm they create. Apollo-Controlled CMG Caught In a Small MVPD Retrans War RBR-TVBR Despite what station management led by Rob Rohr (pictured) calls its “best efforts,” the dominant TV station serving Ohio’s Miami Valley was “blacked out” by a small MVPD serving a county due north of metropolitan Dayton. There’s a lot more to the story, as the county impacted is the subject of a 2018 FCC action that amended the market for this Dayton TV station.

 

Its share price hasn’t been this strong since April 2019.

Now, armed with new vigor and ION Media properties in its stable, The E.W. Scripps Co. is busily preparing for a “special investor presentation” with its President/CEO and its Local Media President, among other C-Suite members.

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HIALEAH, FLA. — The nation’s largest Hispanic-owned media company superserving Latino audiences through radio, TV and digital properties has launched a senior secured notes offering.

The offering is designed expressly to repay its 12% senior secured notes … due four years ago.

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HIALEAH, FLA. — They’re just preliminary numbers, but they are certainly worth a gander.

Spanish Broadcasting System (SBS) on Friday offered a sneak peak of its Q4 2020 results. What does the company led by Raúl Alarcón Jr. have to say?

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GroupM released a blog post on Friday that shares more details on how it is operationalizing data ethics with a proprietary scoring logic, criteria, and standardization tool.

The topic could be of key interest to broadcast TV and radio executives. As such, we are sharing it in its entirety to RBR+TVBR Members.

Data collection in advertising is accelerating faster and the ability to responsibly use that data is becoming more and more crucial. Advertising’s responsibility is to ensure we are protecting the data of our customers, members and audiences.

As a result of the increased collection, we’ve seen increased privacy protection laws worldwide over the last couple of years. While that reflects the growing interests and concerns from consumers about how their data is used, the reality is that regulations and legislation are usually one step behind what consumers really want and how they’re feeling.

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With suspended or smaller quarterly dividends and double-digit ad revenue declines still being seen across the radio broadcasting industry’s big publicly traded players, one may mistakenly believe that all is not well with the oldest form of social media in the world.

The Radio Advertising Bureau has released new data that thwarts such chat.

“Years of refining digital strategies” paid off for the radio industry in 2020, it says.

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According to RAB data compiled in association with Borrell Associates, digital ad revenue in 2020 hit $1.1 billion.

This accounts for greater than 14% of total ad sales.

Local radio stations saw digital sales increase nearly 12%, with growth forecast to accelerate 18% this year.

“The due diligence the radio industry has put into expanding its digital platforms and advertising offerings over the last few years contributed mightily to the 2020 bright spot of digital growth,” said RAB President/CEO Erica Farber.

And, says Gordon Borrell, “The pandemic actually delivered a gift to the radio industry last year. Stations saw very clearly how digital products can be a linchpin, especially when core-product sales are challenging. Digital kept the conversation going.”

The report also shined a light on how additive digital revenue can be for a radio station. The average station made $290,150 in digital revenue in 2020; the average market cluster made $1.3 million. The average revenue for the top five performers ranged from $2 million for top-performing clusters in the smallest of markets, to $17.8 million in the largest.

The findings are included in RAB and Borrell’s report, “Defying the Gravity of 2020, Radio’s Digital Sales Rise 11.8%.”

It is being released today to RAB members and analyzes online ad revenue from 3,621 radio stations, as well as survey responses from 944 local radio buyers and a survey of 238 radio managers.

Among the topline findings:

• 80% of stations offer digital sales training at least once a month
• 81% of stations are offering some form of digital services in addition to digital advertising
• Nearly 2/3 of radio sellers try to include digital offerings in every sales pitch
• More than half of stations flipped their sponsored events in 2020 to virtual events

The report and upcoming live-video presentation are both sponsored by Marketron.

On June 21, 2007, a group of AM and FM radio stations were placed into the Aloha Station Trust.

It involved properties owned by iHeartMedia predecessor Clear Channel Communications, which was forced to divest of the properties after it became a reconstituted operation through a now-infamous investment by private investment groups right before the great economic downturn of the late 2000s.

Nearly 14 years later, the last station to be placed in that trust, originally overseen by the late Jeanette Tully, is heading to a new owner.

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With esteemed WFAA-8/Dallas VP/Station Manager Carolyn Mungo pinch-hitting following the retirement at the end of 2020 of John Remes, TEGNA’s NBC affiliate Minneapolis has been seeking his formal successor.

TEGNA has now found that individual. As such, its KARE-11 is preparing to welcome the News Director since 2018 of Sinclair Broadcast Group’s ABC affiliate in Seattle.

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LOS ANGELES — The largest independent sell-side advertising platform has entered into a definitive agreement to acquire SpotX from RTL Group for $1.17 billion in cash and stock.

SpotX is one of the leading platforms shaping Connected TV and video advertising globally.

And, it is poised to become a part of Magnite.

When combined, Magnite and SpotX will create the largest independent CTV and video advertising platform in the programmatic marketplace.

“Sellers have been looking for a scaled independent alternative to the giant companies who dominate the CTV marketplace,” said Michael Barrett, President/CEO of Magnite. “The combination of Magnite and SpotX will make this a reality by bringing together the best CTV technologies and teams at a critical time. Ad-supported CTV is just beginning to draw budgets from linear TV and we will be well-positioned to participate in the strongest segment of industry growth for the foreseeable future.”

Mike Shehan, Co-Founder and CEO at SpotX, added, “As CTV flourishes and the media industry continues to turn to programmatic, there is a huge opportunity for an independent scaled company to offer the single most comprehensive technology in the market. We built SpotX with the mission of becoming the leading global video advertising platform, and our goal is now coming to fruition with Magnite. I am thrilled about what we will achieve together.”

Together, Magnite and SpotX will serve some of the world’s leading programmers, broadcasters, platforms and device manufacturers, including A+E Networks, Crackle Plus, The CW Network, Discovery, Disney/Hulu, Electronic Arts, Fox Corporation, fuboTV, Microsoft, Newsy, Philo TV, Pluto TV, Roku, Samsung, Sling TV, Tubi, ViacomCBS, Vizio, Vudu, WarnerMedia and Xumo.

Transaction Details

Magnite is targeting in excess of $35 million in run-rate operating cost synergies, with more than half of the synergies realized within the first year of combined operations.

Magnite plans to finance the transaction with cash on hand, 14 million shares issued to RTL Group and committed financing from Goldman Sachs. The company expects the transaction to close in the second quarter, subject to receipt of regulatory approvals and satisfaction of customary closing conditions.

Until the transaction closes, both companies will continue to operate independently.

Goldman Sachs and LUMA Partners acted as financial advisors to Magnite and Goldman Sachs is providing committed financing for the transaction.

Gibson Dunn provided legal counsel to Magnite.

In early 2019, Community Broadcasters, the company led by Bruce Mittman and Jim Leven, agreed to sell their radio stations serving the Twin Tiers of New York and Pennsylvania to a growing radio station owner led by CEO Kristin Cantrell and COO Jim Loftus.

Nearly one year later, in December 2019, Cantrell’s Kentucky-based company struck again, snagging three more stations serving a portion of the region that includes Corning, Elmira and Watkins Glen, N.Y.

Guess what? Seven Mountains Media is at it again, and this time two other players are involved.

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In the Spanish language, “humo” means smoke.

But, there’s definitely no smoke and mirrors behind a new effort from NBCUniversal Telemundo Enterprises that gives a breath of fresh air — and life — to parent Comcast’s free ad-supported streaming TV service.

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Locast, the donation-based broadcast TV-via-IP service that the Big Four television networks and the NAB despise for its unique weave-round regarding retransmission consent, has now entered its 29th market.

The service is now available in a city some refer to as “The Big Tomato.”

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It’s share price is now higher than where it was before the COVID-19 pandemic ushered in stay-at-home edicts and, with it, a sharp financial downturn on Wall Street, Broad Street and on stock markets across the globe.

With that positive momentum, Nielsen Holdings plc‘s Board of Directors has declared a quarterly cash dividend.

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By Thomas Urban
Fletcher Heald & Hildreth

WASHINGTON, D.C. — For nearly a year, the world has battled a pandemic defined as Coronavirus-19 or COVID-19. This virus has caused enormous damage worldwide in terms of human life, health, and economic devastation. This destruction has been acutely felt here in the United States, with the death of hundreds of thousands of Americans and the long-term illness of millions, as well as severe economic loss due to factors beyond the control of those who have been affected.

The COVID-19 pandemic also has had a significant effect on the U.S. legal system.

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On February 12, 2020, a Seattle FM will officially kickoff a yearlong celebration of its 50 years serving the Pacific Northwest’s biggest metropolis with rock ‘n’ roll music — and a little talk, too.

Today an Entercom Communications station, KISW-FM 99.9 is celebrating its longevity in Seattle with “The 50th Anniversary Weekend.”

Special programming will pay tribute to the station’s legacy with stories and memories from KISW alumni; local civic, sports and business leaders; and bands and artists from both Seattle and around the world.

KISW debuted as an Album-Oriented Rock station on February 14, 1971.

Guests are set to include bands Metallica, Guns N’ Roses, Soundgarden, Pearl Jam, Foo Fighters, Nirvana, Greta Van Fleet, Heart, Alice In Chains, Disturbed, Judas Priest, athletes from Seattle Mariners, Seahawks, Kraken and Sounders, Mayor of Seattle Jenny Durkin​, singer-songwriter Sammy Hagar, and actors Joel McHale and Rainn Wilson​.

“There are only a handful of radio stations that can brag about thriving for 50 years in a particular format, and KISW is one of them,” said Jack Hutchison, SVP and Market Manager for Entercom/Seattle. “KISW is synonymous with Seattle. We’d like to extend our heartfelt thanks to the many talented people who have been and still are part of this journey. They know the secret to our success has been to – first and foremost – recognize and immerse ourselves within the community. We’re not done, so stay tuned for the next 50 years. They are going to be fun.”

Dave Richards, Entercom’s Rock Format Captain, added, “To be able to celebrate a milestone like this is a rarity, and we don’t take that lightly. We celebrate this golden anniversary with everyone who has been along for the ride.”

Back in 1971, KISW was owned by Kaye-Smith, with Frank Sinatra a minority owner. Like many rockers, it started out with a progressive rock feel before evolving.

Over the years, personalities and shows like “Robin and Maynard,” “Langan and West,” “Crowe and West,” “Bob Rivers Twisted Radio,” Howard Stern, “BJ and Migs” and “The Mens Room” have helped KISW attract listeners.

Now, it is looking back as it sets to enter its sixth decade of service.

Amid the COVID-19 Pandemic, Home is Where the Connectivity Is 

It’s a trend Nielsen believes is important for brands and advertisers looking to stay in touch with consumers as their habits—and their habitats—shift.

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Comcast Advertising’s Agency Leadership Council (ALC) recently commissioned Advertiser Perceptions to find out how more than 300 cross-screen TV advertisers and marketers are approaching measurement in 2021.

The results are now here, and they examine advertisers’ and marketers’ openness to new providers, and what may be holding them back from moving more quickly on new measurement currencies.

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EUREKA, CALIF. — For local television viewers that wish to watch the local NBC and CBS affiliates, it’s been a difficult start to 2020. First, Altice USA-owned Suddenlink, the dominant cable TV services provider across Humboldt County, blocked its customers from viewing them in the absence of a retransmission consent agreement.

Then, as soon as that “blackout” ended, another one transpired, with AT&T-owned DirecTV preventing its subscribers from seeing the stations — owned by Cox Media Group.

The local Member of Congress is irate. And, he’s going so far as to seek the elimination of the so-called “UHF discount” in legislation he’s set to introduce — a new wrinkle to Rep. Jared Huffman‘s efforts in Washington to end retrans impasses such as these.

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WASHINGTON, D.C. — One of the world’s best-known audio equipment manufacturers has asked the FCC to reverse a decision made by the Pai Commission by reconsidering the merits it believes a dedicated UHF television channel for wireless microphone use would bring to its users.

Under former Chairman Ajit Pai the FCC declined to provide at least one “vacant” 6MHz UHF channel in each market for its exclusive use by wireless microphones.

It was tied to the FCC’s termination of a “vacant channels” rulemaking opened during its 600 MHz incentive auction.

Shure Incorporated disagrees with the FCC’s conclusions and rationale for terminating the proceeding. Now, with acting Chairwoman Jessica Rosenworcel at the helm, it believes a change from Republican to Democratic leadership may be ripe for a relook.

In a petition filed the Commission, Shure argues that the wireless microphone community needs clear spectrum now more than ever. That’s because, it says, the 600MHz band has been reallocated to mobile phone use. Add to that the post-spectrum auction “repack” of broadcast TV stations, which moved many TV stations to the 500MHz spectrum.

“At the same time, broadcast, performance, and sporting productions continue to demand more channels of wireless microphones than ever before,” Shure said.

It added that the “alternative” frequencies identified by the FCC in 2017 for wireless microphone use at 900MHz, 1.4GHz, and 7GHz “fall far short of addressing the needs of wireless microphone users. These bands do not have the same characteristics and operational flexibility as UHF frequencies. Because these bands are occupied by licensed users in other industries, access to these bands for wireless microphone use is conditioned on sharing requests, which can be lengthy and ultimately denied.”

Further, Shure argued that the 600MHz duplex gap and VHF frequencies offer interference and other considerations that constrain use. “Together, these other spectrum resources are helpful but are not practical alternatives to UHF, and the certainty of having access to at least one vacant UHF channel is important to meet demand for wireless microphone use. The designated UHF channel would also be important for applications that include intercom, IFB and others.”

Ahren Hartman, Vice President of Corporate Quality, commented, “With the loss of 700MHz, 600MHz, and the DTV repack into 500MHz, we are at an all-time low for access to UHF spectrum. However, the need for open and clear wireless microphone spectrum is higher than ever before.”

RBR+TVBR Washington Bureau